News:

Domestic alcohol producers are reaping the tax benefits from the Craft Beverage Modernization and Tax Reform Act (CBMA), which took effect January 1, 2018. Importers, who are also eligible for the tax cuts through appointment by foreign producers, have not received much guidance on the implementation of CBMA. Importers will be pleased to hear that Customs and Border Protection (CBP) has recently announced that further specific guidance and instructions on how to receive reduced tax rates and tax credits will be released in mid-October via the CSMS messaging system. An announcement summarized the process that importers of certain limited quantities of distilled spirits, beer, and wine will follow once they are given the green light. For an importer to be eligible to receive the reduced tax rates, they will have to substantiate that the foreign producer/assigning entity has assigned an allotment of its reduced tax rate or tax credits to the distilled spirits, beer, or wine imported into the U.S. CBP will process and liquidate claims for entries made in calendar year 2018, beginning January 31, 2019 for importers. CBP will begin its review with the oldest entry on file with a CBMA claim and work forward chronologically. Any 2018 CBMA claims that are not substantiated with the required documentation byJanuary 31, 2019 are at risk of being liquidated without the benefit of the CBMA rate.  If the importer has a complete and valid claim and the allocation limit has not been reached at the time of CBP review, CBP will liquidate the entry and apply theCBMA rate. As will be discussed in greater detail in the mid-October 2018 CSMS message, importers will signal…

  Senate Bill 51-49 includes a two-year version of the Craft Beverage Modernization and Tax Reform Act, which cuts the federal excise tax on spirits, wine and beer, allows in-bond transfers of bottled spirits and provides for the expensing of certain costs related to the aging process of alcohol. The Craft Beverage Modernization and Tax Reform Act creates a tiered excise tax rate for distilled spirits, a shift from the flat $13.50 per proof gallon rate. The rate of tax is lowered to $2.70 per proof gallon on the first 100,000 proof gallons of distilled spirits, $13.34 for all proof gallons in excess of that amount but less than 22,130,000 proof gallons, and $13.50 for amounts greater. Like many others in the alcohol industry, the Alcohol and Tobacco Tax and Trade Bureau (TTB) is experiencing the effects of the Act. Sizeable federal excise tax reductions on beer, wine, and spirits will undoubtedly impact the TTB’s regulations in one way or another, but for the moment TTB officials are still trying to narrow the practical implications of the Act which went into effect January 1, 2018. TTB has not yet released guidance but their website reads “On December 22, 2017, the President signed into law the Tax Cuts and Jobs Act of 2017, which makes extensive changes to the Internal Revenue Code of 1986, including provisions related to alcohol that are administered by TTB. Those changes are effective January 1, 2018. We are currently assessing the impact of these changes on TTB forms, regulations,…

Posted in ACSA, alcohol beverage law, Craft Spirits, TTB | Tagged Ashley, Congress, Craft, FET, TTB | Comments Off

The Brewers Association (“BA”), the trade group of independent American craft brewers, launched a seal that informs consumers that the beer was produced by an independent brewery. The BA release says, “to proudly display that independent spirit, the Brewers Association has created a symbol to unify craft breweries from around the country. This symbol—the independent craft brewer seal—gives beer lovers an easy way to identify true small and independent craft brewers, something they have indicated is important to them.”   In explaining the logo, BA CEO says, “independent craft brewers continue to turn the beer industry on its head by putting community over corporation and beer before the bottom line.” To get the seal, the brewery must comply with the below: Have a valid TTB Brewer’s Notice. Meet the BA’s craft brewer definition, and Sign a licensing agreement. For more information click here.    

Posted in beer, craft beer | Tagged beer, brewers association, Craft, what is craft | Comments Off